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FSIA Protects National Oil Company
The United States Court of Appeals for the Second Circuit ruled October 18, 2007 that Congo's national oil company was immune to the charges of racketeering. Originating in 2005, Kensington International Limited v. Société Nationale des Pétroles du Congo, et al., docket no. 05 Civ. 5101 (LAP), involves claims against the company, its former Chief, Bruno Jean-Richard Itoua, and French bank BNP Paribas. According to the ruling, the defendants attempted to redirect oil revenues from the Republic of Congo to Congolese public officials, while keeping oil and revenue from seizure by legitimate creditors.
The appeal from SNPC and Itoua, docket nos. 06-1763-cv (L) and 06-2216-cv, came after a 2006 decision by U.S. District Judge Loretta Preska in Manhattan denying the defendants' motion to dismiss under the Foreign Sovereign Immunities Act. She found that the commercial activity exception to the FSIA annulled any immunity to which the defendants were entitled.
The commercial activities exception, 28 USC §1605(a), states that a foreign state does not enjoy immunity in any case that the action is based upon commercial activity in the United States or causes a direct effect in the U.S. The appeals court agreed with SNPC and Itoua that the commercial activity abroad did not have direct effect in the United States. However, the appeals court remanded the case to the district court to consider whether the FSIA applies to individual officials, such as Bruno Jean-Richard Itoua. -- Genevieve Cohoon, legal assistant, Berliner, Corcoran & Rowe, LLP, Washington.
Tue, / / Embassy Law Link
